The antitrust case against Steam, initially filed by Wolfire Studios and Dark Catt Studios in 2021, has taken a significant turn.
A U.S. court document seen by GamesIndustry.biz, has approved the motion for class certification, broadening the lawsuit's scope to include "any developers, publishers, or individuals" who have adhered to Steam's 30% revenue cut for purchases made since Jan. 28, 2017.
This expansion, granted by United States District Judge Jamal N. Whitehead, amplifies the stakes for Valve, Steam's parent company, as it faces intensified scrutiny over its business practices.
Origins Of Steam’s Antitrust Case
The dispute began with Wolfire Games' claim that Valve leverages its dominant market position to impose "an extraordinarily high cut" on sales through its PC platform. The studio argued that this practice exploits both publishers and consumers, stifling competition and inflating prices.
After the original lawsuit was dismissed in November 2021, Wolfire returned in May 2022 with a revised complaint. This time, the focus sharpened on Valve's Platform Most Favoured Nations (PMFN) policy, which allegedly ensures Steam's commission remains "supracompetitive."
Allegations And Antitrust Implications
The plaintiffs contend that Valve's policies harm competition in three critical ways:
- Steam secures a disproportionately high commission.
- Developers and publishers are unable to compete across distribution platforms.
- Rival platforms struggle to gain traction in the marketplace.
These practices, the lawsuit alleges, violate multiple antitrust laws, including Washington’s Consumer Protection Act. The plaintiffs are seeking “class-wide remedies” to address the financial impact on publishers and inflated costs for consumers.
Valve's Defense And Courtroom Developments
Valve has pushed back against these claims, particularly targeting the testimony of Dr. Steven Schwartz, an expert witness whose findings characterize Valve as the dominant force in PC game distribution.
Valve argued that Schwartz's conclusions were "based on faulty methods and improper assumptions" and sought to have his testimony dismissed. However, the court rejected this request, allowing Schwartz’s analysis to remain part of the proceedings.
Broader Implications
With the lawsuit now class-certified, it opens the door for a wider array of developers and publishers to join the case. Wolfire and Dark Catt will act as class representatives, potentially uniting a broad coalition of industry stakeholders under the same legal banner.
This case depicts growing concerns about market dominance in the digital distribution sector. As rival platforms like the Epic Games Store attempt to chip away at Steam's market share, the outcome of this lawsuit could set significant precedents for how revenue-sharing models and platform policies are regulated moving forward.
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